The Club of Rome seeks to reframe the sustainable finance discussion beyond incremental shifts in the deployment of capital and management of risk to the deep transformation of the finance system at large. It is acknowledged that the current financial system is a major hinderance in phasing out the old economy and a new financial paradigm is critically important to enable a new economy that is fair to people and will operate within the planetary boundaries.
This change finance philosophy defines all the work of Rethinking Finance Impact Hub, based on a set of fundamental high-level principles in creating a regenerative financial system. The hub is embarking on a number of research projects to explore fundamental barriers within the financial system which prevent it serving the transformation of the economy and to co-develop systemic measures to “change finance”.
International finance reform
Research and policy analysis is being developed by The Club of Rome to better understand the role of private and public finance and to identify the policy levers required to achieve the urgent turnarounds needed for wellbeing for all within planetary boundaries, as outlined in the Earth4All initiative. What are the innovative financial solutions that are needed to move from billions to trillions to make progress on poverty, inequality, empowerment, food and energy? What are the contributions of current sources of finance and potential new ones?
The Club of Rome is a member of the Beyond Bretton Woods initiative – which is working to lay the foundations for a fair, equitable, nature-centric, healing and regenerative international financial architecture.
European sustainable finance agenda
The Club of Rome is engaging in the European sustainable finance agenda to influence the policy direction through the lens of change finance. The organisation aims to elevate the European Union’s role as a catalyst for change internationally to reform the global financial framework, in line with shifting towards a broader change finance agenda and delivering on Earth4All.
A trusted network of policymakers, public finance institutions and change agents has been established to co-create systems solutions for European financial policy with global impact. An example is The Club of Rome co-president’s Sandrine Dixson-Declève’s contribution to the recommendations of the European Commission’s Technical Expert Group on Sustainable Finance and the Platform on Sustainable Finance.